Learn the difference between Binance Smart Chain (BSC) and Binance Chain (BC) and how they relate to Ethereum’s EVM or Ethereum Virtual Machine
Binance Smart Chain (BSC) is a blockchain running parallel to Binance Chain (BC) that has smart contract compatibility with the Ethereum Virtual Machine (EVM). The goal was to have the high throughput of Binance Chain while introducing smart contracts into its ecosystem. In short, the result is a fast EVM clone with cheaper gas fees.
Both BSC and BC operate side-by-side and BSC is not a layer two solution. It is an independent blockchain that can run even if Binance Chain went offline. Because BSC is EVM-compatible, it makes it easy for developers to port projects from Ethereum. For users, this means apps like MetaMask can be configured to work with BSC.
Read: What is DeFi
Funding Your Wallet
The most important thing to understand when getting started with BSC is the BEP-20 token. If you understand the concept of ERC-20 Tokens, then you will already be familiar with BEP-20 tokens. It uses the same functions as its Ethereum counterpart.
Ethereum uses the ERC-20 standard while Binance Smart Chain uses BEP-20. Just as Ethereum uses ETH for transaction fees, BSC uses BNB. So, the first thing we need to do is put some BNB in our new wallet.
The easiest way to fund your wallet is to transfer BNB from an exchange that supports BEP-20 withdrawals. Always remember…
- ERC-20 goes to Ethereum wallets
- BEP-20 goes to BSC wallets
Using Binance Smart Chain
Now that we have our wallet funded, we can participate in the growing DeFi space by interacting directly with the blockchain.
PancakeSwap allow trustless exchange of assets, much like Uniswap, and engage in yield farming and staking. Similar projects include BurgerSwap and BakerySwap. We can also access dApps like Beefy Finance that use yield optimizers and auto-compounding to realize some very lucrative gains.
If you are new to crypto, get used to seeing food themed dApps. If you are taken back at first, remember the giant that is Google has been naming operating systems after foods like marshmallows and cupcakes since the year 2009.